Pollard Banknote Ltd (PBL-T)

It is the second largest supplier of printed lottery tickets and a leader in web based lottery tickets in the U.S. There are only three players allowed to sell printed lottery tickets for the government, all of which have trouble meeting demand. The only problem is the big increase in the costs of materials along with fixed price contracts with the government. However the new contracts are at higher prices so there should be a great increase in profits ahead. Margins should recover and do even better. Trading at 7X earnings.

A major core holding of his. Sports betting doesn't impact instant lottery tickets which is in fact booming. PBL leads in online lotteries. But shares got way overvalued because excitement over online lotteries and has come down (also due to higher raw costs like ink and paper). He sold then bought back shares. A high-quality, stable company. Drivers: an oligopoly of only 3 players, and governments constantly need revenues.

Family owns around 65% of company. Not a highly traded stock. Lottery tickets is largest component of business (steady business model). Smaller stock that isn't very liquid (don't expect much growth).